Geneva, Switzerland, 16
January 2012 – A new World Economic Forum Report says up to US$ 2
trillion could be saved through resource-efficient measures across just three
sectors – carbon, steel and iron – in the major economies alone. The report, More
with Less: Scaling Sustainable Consumption and Resource Efficiency, outlines the opportunity and imperative
for industry-led action for smarter resource efficiency through which economic
value can be created without environmental depletion and degradation.

The report,
produced with
the support of Accenture, reveals
sustainability efforts stuck in “pilot paralysis”, with slow intergovernmental
progress and increasing citizen-consumer impatience as we look onto a decade of
economic and societal turbulence. It suggests that industry can lead the way as efficiently, and perhaps
with more immediate benefit to the consumer and the global economy, than traditional
models for global action that exist today.

“The sustainability agenda
is not an abstract development concept,” said Sarita Nayyar, Managing Director,
Head of Consumer Industries, World Economic Forum. “There is real economic value at stake.
Companies that effectively weave resource efficiency into their core strategy
and operations can drive revenue growth, reduce cost and improve brand reputation.”

It is increasingly evident that the exhaustion of
natural resources is a structural risk to long-term economic stability. A
combination of a changing climate and increased demand in emerging economies has
been pushing up costs of agricultural commodities. The price of cocoa rose by
246% and palm oil by 230% in just over the past decade. By 2030, freshwater
demand will have exceeded the current capacity to supply by over 40% globally with
close to 4 billion people will be living in areas of high water stress.

The
business case for the “green shift” is strong. If consumer goods
industries increase their energy efficiency, they could save US$ 37 billion in
2030. Given the current geopolitical stresses and rising demand, which could
potentially result in a 50% increase in energy costs, the 2030 figure could be
as high as US$ 55.5 billion.

A
country’s sustainability also increases its competitive advantage. India, the
US and China fell more than 10 places last year, while Brazil, Kenya and the
Philippines rose over 10 places on the Forum’s Sustainable Competitiveness
Index, which
ranks the impact of natural and social wealth on a country’s competitiveness.

“Scaling resource efficiency
is not just ‘nice’ to have. It is a business imperative, a new model for
sustainable growth in a world where we need to do more with less,” said Peter
Lacy, managing director, Sustainability Services EALA for Accenture and Project
Advisor. “It means rethinking business models and supply chains. It requires
fundamental shifts, both in the way we deliver the products and services people
want and need, and in the relationship between consumers and consumption.”

The report‘s findings
conclude that business can pave the way to securing competitive advantage in a
resource-constrained world by empowering consumers and governments through the
following actions:

Transform demand: The consumer is at the
heart of sustainable consumption. However, consumers care more about price,
performance and convenience than sustainability. About 50% of consumers
surveyed in over 40 countries stated that they do everything they can to
protect the environment, but only a small proportion buys ethical brands and
pays more for organic food. Consumers need to be more consistent with their
actions, and businesses
need to engage with consumers to ensure they are able to match their actions
with their desires.

Transform value chains: Many companies have specific initiatives that
aim to make their business more sustainable, but these often exist in one
department or in a silo. Companies need to embed sustainability across the
entire organization to be more efficient, innovate to tap into new markets and
collaborate within and across industries to drive scale around sustainability.
This needs to happen in every company for sustainability to ever get to
scale.

Transform the rules of the game: Intergovernmental processes are not
delivering fast enough. Business can help shape the policy landscape to drive
speed and scale. Key areas for public-private interaction will be the greening
of public procurement, reform of harmful subsidies, improving regional trade
agreements and enabling long-term investments.

Although
none of these dimensions are new in their own right, a holistic approach is currently
missing. To bring solutions to scale, there is a need for a critical mass of
stakeholders to work together across sectors. At the World Economic Forum Annual
Meeting 2012 in Davos-Klosters this month, the Forum will drive a business-led dialogue
to help achieve step changes in sustainability. Along with key partners, the
Forum will develop a programme of practical action in time for Rio+20 to ensure
delivery on promises made.

The World Economic Forum is an international institution committed to improving the state of the world through public-private cooperation in the spirit of global citizenship. It engages with business, political, academic and other leaders of society to shape global, regional and industry agendas.

Incorporated as a not-for-profit foundation in 1971 and headquartered in Geneva, Switzerland, the Forum is independent, impartial and not tied to any interests. It cooperates closely with all leading international organizations (www.weforum.org).